Wärtsilä And Zhuhai Yuchai Marine Power Sign Licence Agreement
Wärtsilä Corporation and Zhuhai Yuchai Marine Power Co Ltd, a subsidiary of Guangxi Yuchai Machinery Group Co Ltd, have jointly signed a license agreement for the manufacture and sale of Wärtsilä RT-flex low-speed marine diesel engines by Zhuhai Yuchai Marine Power in China. The agreement was signed in Zhuhai City in Guangdong province by Mr Jiang Shihong, Chairman of Zhuhai Yuchai Marine Power, and Mr Martin Wernli, President of Wärtsilä in Switzerland.
The agreement grants Zhuhai Yuchai Marine Power the right to manufacture all sizes of Wärtsilä RT-flex modern low-speed engine types at its new factory in Zhuhai City, Guangdong province. However, Zhuhai Yuchai Marine Power will focus on engines of 35 to 50 cm cylinder bore. The new manufacturing capacity of Zhuhai Yuchai Marine Power will make a significant contribution to the delivery of Wärtsilä low-speed marine engines to the growing shipbuilding industry in China. The first engines are planned to be completed in November 2011.
“Zhuhai Yuchai Marine Power is looking forward to building Wärtsilä low-speed engines. The new agreement makes it possible for our company to deliver today’s most advanced low-speed diesel engines to our shipyard customers. It will extend our product portfolio and put our company right among the leading suppliers of marine equipment to the Chinese shipbuilding industry”, said Mr Jiang Shihong. “Wärtsilä is pleased to be able to establish this partnership with a company in the well respected Guangxi Yuchai Machinery Group and to increase the manufacturing volume for smaller Wärtsilä common-rail low-speed engines. We look forward to a long-lasting fruitful partnership”, said Mr Martin Wernli.
The new licensee is located at Zhuhai City in Guangdong Province. Founded in 1951, Guangxi Yuchai Machinery Group, the parent company of the new licensee, is located at Yulin City in Guangxi province in south-west China. Guangxi Yuchai Machinery Group is the largest manufacturer of and the market leader for automotive four-stroke diesel engines in China. The new licensee is building a new factory on a 330,000 m2 site at Fushan Industry Zone, Zhuhai City, for the manufacture of low-speed engines. The new factory will have an initial capacity to build engines with an aggregate output of about 1.2 million brake horsepower (885 MW), later increasing to three million bhp (2,205 MW).